mergers and acquisitions awesome presentation

1. MERGERS&ACQUISITION
IMPACT ON FINANCE
BY KISHORE N
BADRUKA COLLEGE

2. Presently business are combine to improve
competitiveness of companies and gaining comparative
advantage over other firms through gaining greater market
share, broadening the portfolio to reduce business risk,
entering new markets/geographies and capitalizing on
economies of scale merger and acquisition is to bring the
two organizations together with different cultural values,
personality and cultures.

3. A merger is an integration of two or more firms into one
and firm agrees to share the control of joint business
with other owner. The phrase merger or acquisitions
are mostly used interchangeable an acquisition is a
single or multiple transactions whereby a company
purchase the assets or shares of another company
with the intention of obtaining its control.

4. An acquisition is defined as a process in which a
company or an individual acquire the assets of
another company, either directly by taking the
ownership or indirectly just by taking the control on
the company’s management.

5. Difference
between
M&A

6.  By purchasing of assets
 By purchase of common shares
 By exchanging of shares for assets
 By exchanging of shares for shares

7.  Flipkart- Myntra
 Asian Paints- Ess Ess Bathroom Products
Ranbaxy- Sun Pharmaceuticals
TCS- CMC
Tata Power- PT Arutmin Indonesia

9. In Mergers and Acquisitions, financial performance
of firms is determined by evaluating the following
Profitability
Liquidity and
solvency

10. Profitability shows the extent to which a company has
being efficient in its operations or gauges a company’s
operating success over a given period of time

11. Liquidity measures the ability of a firm to meet its
short-term obligations in due course. Liquidity
measures the ability of a company to pay its short-
term debt and meet unexpected cash needs.

12. Solvency is best conducted via Total
Debt ratio (TDR) and Total Assets
ratio (TAR).
Which will depends on the company’s
Financial position.

13. Improves liquidity and have direct access to cash
resource
Disposes of surplus and outdated assets for cash out
of combined enterprise

14. Enhance gaining capacity, borrow on better strength
and greater assets backing
Avail tax benefits
Improves EPS (Earning per share)